In April 26, 2020 the non-tariff quota for grain export from Russia that amounted to 7 mn tons was fulfilled. In accordance with Order No. 385 of the Government of the Russian Federation of March 31, 2020, after all wheat, meslin, rye, barley and corn declared within the quota was exported, the export of these crops to the states that are not members of the Eurasian Economic Union is to be suspended until July 1, 2020, the Ministry of Agriculture reported last week. The Federal Customs Service has stopped issuing new export declarations.
The Ministry of Agriculture expects that this restrictive measure will help stabilize grain prices and meet the country’s domestic demand in grain and grain products. According to the Ministry, the restrictions will not affect the agricultural products export targets set for 2020.
According to Rusagrotrans, as of mid-April of the 2019/2020 agricultural season, 33.2 mn tons of grain were exported, 13% down year-on-year.
According to grain market experts, the restrictions for grain exports may lead to disruptions in the supply chain, andsea ports will reduce grain throughput.
According to SeaNews PORTSTAT online service, as of the end of the first quarter of 2020, the volume of grain handled via Russian ports amounted to just over 10 mn tons (+ 14.9% compared to the 3 months of 2019), including 8.88 mn tons of export designated grain, up 129% year-on-year.
Our country is one of the major wheat exporter. In 2019, Russia harvested 120.6 mn tons grain. According to the optimistic forecasts of the Russian government, this year’s harvest could make 125.3 mn tons.